Simple IRA – Owners’ Match
Our Simple IRA started the year with one employee who left in April. We funded her 3% match right after that.
My husband and I are the only 2 remaining participants.
The company owes us now. I did read in some IRS publication that I thought we could go as low as 1% for a year.
When it is owners only left, can we match ourselves 1% or even 0% or are we locked into the 3%.
Appreciate your thoughts on this.
Permalink Submitted by Alan - IRA critic on Wed, 2023-01-25 16:34
You are treated as employees and all employees must receive the same matching rate for the year. These are calendar year plans and you could reduce the match effective 1/1/2024 in the annual notice due 11/2/2023.